Instructor’s Manual Abstracts
Issue 2 IM Abstract: Friendlier: Growth in Re-Use
Richard S. Bloomfield
Case Overview
In early summer 2022, Shivansh Skuta wished to assess the projected financial position of Friendlier, a reusable food container company, in order to review the company’s request for seed funding. As a seasoned investor, Skuta wanted to ensure that the valuation was appropriate and the request was fair for other potential investors. Kayli Dale and Jacquie Hutchings the founders of Friendlier, had just graduated the University of Waterloo and were eager to make a positive environmental impact by reducing single-use plastics and expanding their reverse logistics firm.
Learning Objectives
By working through this case, students should be able to
- Evaluate past financial performance using selected ratios.
- Prepare projected financial statements.
- Consider the impact of three efficiency metrics (age of accounts payable, age of accounts receivable, or age of inventory) by performing sensitivity analysis.
- Analyze risk level by applying the three C’s of credit and explore the implications of this analysis.
- Prepare a well-supported recommendation that considers both quantitative and qualitative case analysis.
Course Suitability
This comprehensive financial management case is designed for an introductory business course at the undergraduate level. It is best taught towards the end of the unit and is suitable to be used for a unit test.
Recommended Reading
Grasby, E. (2008). Introductory note on financial management (Product No. 9B08B008). Ivey Publishing.
Leon, C. (2021, June 5). Guilty about tossing takeout containers? This startup has the answer. London Free Press. https://lfpress.com/news/local-news/guilty-about-tossing-takeout-containers-this-startup-has-the-answer.
Pace, T. (2021, June 16). SkipTheDishes is getting friendlier with the environment thanks to this Guelph-based company. City News Kitchener. https://kitchener.citynews.ca/following-up/skipthedishes-is-getting-friendlier-with-the-environment-thanks-to-this-guelph-based-company-3879310.
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